Rane Group, a leading auto component manufacturer, on Wednesday announced a major diversification into defence and aerospace.
Rane Holdings, the holding company of the Rane group, acquired 26 per cent equity stake in SasMos HET Technologies Pvt. Ltd., a company engaged in manufacturing interconnection systems (cable harnesses) for various applications in the defence and aerospace industries, says a company release.
As a part of its growth strategy, Rane Group has been exploring opportunities to go beyond its current presence in automotive industry.
The Group has been scouting for opportunities to grow and identified defence and aerospace industry as a possible area after the Indian Government's decision to allow private participation in these sectors.
SasMos HETTechnologies is a Bangalore-based manufacturer of products such as cable assemblies, wiring harness, panel-boxes, and electro-mechanical assemblies used in aerospace and defence industry and has been looking for a suitable partner to expand its business. SasMos, is an eligible ‘Offset Partner' for supplies to the Indian defence sector and also supplies interconnection systems (cable harnesses) to both domestic and overseas customers.
In the initial phase, Rane Holdings has invested in SasMos for a 26 per cent equity stake with an option to increase its stake to majority over a period, the release added.
According to L. Ganesh, Chairman, Rane Group, there were significant growth opportunities both in India and as an exporter. This entry also opened a new knowledge base for Rane in electronics which would have a synergy with automotive industry, Mr. Ganesh stated in the release.
